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15. SUBSEQUENT EVENT
9 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
15. SUBSEQUENT EVENT

NOTE 15 – SUBSEQUENT EVENT

 

The Company entered into a revolving and term credit agreement of $1,140,000 with a bank on April 12, 2013 to finance accounts receivable and inventory related to one specific foreign customer.  Under the terms of the agreement, the Company can borrow up to 90% of accounts receivable and 75% of inventory, both for one specific foreign customer to finance accounts receivable and inventory related to one specific foreign customer.  The line of credit is guaranteed by the Export-Import Bank of the United States.  The interest rate for outstanding balances is prime rate plus 1.5% with a floor of 4.75%.  The line of credit is secured by substantially all assets of the Company.  Advances under the line of credit are due upon the earlier of payment by the customer or October 12, 2013.